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  • mindekei mindekei Oct 3, 2012 12:24 PM Flag

    Valuation of New Company - MetroPCS + Tmobile USA

    Isn't Tmobile valued at 1/4th DT? DT market cap is approx. 42B, so Tmobile should be worth 10.5B.

    • Deutsche Telekom AG has a current market cap of $54 billion USD. The $42.2 B is in Euro.

      Tmobile USA is said to contribute about 25% of DT's total income, not valuation. However, we could also try to use the EBITDA valuation, Tmobile/MetroPCS combined ttm EBITDA is about $7.9 Billion, using MetroPCS' current 3.26x market cap/EBITDA multiple, the new company should worth about $25.7 billion. (VZ has a 4.26x and AT&T has a 6.22x MC/EBITDA multiple for comparison's sake)

      Personally, I wouldn't use any Sprint's multiple to value the new Tmobile/MetroPCS company, because Sprint hasn't make a dime for so many years.